# Private label - what it means in sourcing | Cheery Supply Chain

> Your brand on the factory's product. Usually the lowest-friction way to start; tooling stays with the factory.

Source: https://luressource.com/glossary/private-label/

Private label Direct answer Private label: Your brand on the factory's product. Usually the lowest-friction way to start; tooling stays with the factory. Key facts Private label puts your brand on an existing product and the tooling stays with the factory. The packaging and marking as precisely as the product: artwork, barcodes, carton marks and the retail format. Your brand on the factory's product. What it changes for you Usually the lowest-friction way to start; tooling stays with the factory. In practice Private label means your brand goes on the factory's product. It is usually the lowest-friction way to start selling because there is no design or tooling spend, and the factory already knows how to make it. The trade-off is the same as ODM: you do not own the design, so exclusivity has to be bought separately if it matters. Questions about Private What is the difference between private label and OEM? Private label puts your brand on an existing product and the tooling stays with the factory. OEM means the product is built to your specification, and you normally own the tooling and the design. What should a private-label order specify? The packaging and marking as precisely as the product: artwork, barcodes, carton marks and the retail format. Most private-label failures are packaging failures, not product failures. Other terms FOB (Free On Board) - Seller delivers the goods on board the vessel at the named port; cost and risk transfer there. EXW (Ex Works) - Buyer collects at the factory gate. MOQ (Minimum Order Quantity) - The smallest quantity a factory will run for one specification. Tooling cost - The one-off cost of the injection mould, die or print plate. Colourway tolerance - The measured range a factory will hold between sample and repeat production. AQL (Acceptable Quality Limit) - The sampling standard (ISO 2859-1) defining allowed defects per inspected lot. Send a specification All 14 terms Sources Packaging and marking requirements are covered at /compliance/ Where to next Product catalogue Sample listings with price per unit Verified directory Factories that passed 4 verification gates How sourcing works Six steps, timing, failure modes Price benchmark Reference bands and MOQ tiers